P25-23A (similar to) Question Help Members of the board of directors of Security Alarms have received the following operating income data for the year ended May 31, 2018: Click the icon to view the operating income data.) Members of the board are surprised that the industrial systems product line is not profitable. They commission a study to determine whether the company should drop the line. Company accountants estimate that dropping industrial systems will decrease fixed cost of goods sold by $82,000 and decrease fixed selling and administrative expenses by $11,000. Read the requirements Requirement 1. Prepare a differential analysis to show whether Security Alarms should drop the industrial systems product line. (Use parentheses or a minus sign to enter decreases to profits.) in operating income Choose from any list or enter any number in the input fields and then click Check Answer. parts remaining Clear All Check Answer 5-2014 A Data Table of k the soft and Industrial Household Systems Systems Total 330,000 $ 370,000 $ 700,000 - req Net Sales Revenue Cost of Goods Sold: Variable men ses 40,000 240,000 44,000 62,000 84,000 302,000 386,000 280,000 106,000 Fixed Total Cost of Goods Sold Gross Profit Selling and Administrative Expenses: Variable 50,000 264,000 314,000 62,000 41,000 74,000 136,000 27,000 68,000 101,000 204,000 163,000 $ 110,000 Fixed Total Selling and Administrative Expenses Operating Income (Loss) 103,000 (53,000) $ from Print Done ining ard of directors of Security Alarms have received the following operating income data for the year ended M to view the operating income data.) and are surprised that the industrial systems product line is not profitable. They commission a study to dete drop the line. Company accountants estimate that dropping industrial systems will decrease fixed cost of 1 Requirements 1. Prepare a differential analysis to show whether Security Alarms should drop the industrial systems product line. 2. Prepare contribution margin income statements to show Security Alarm's total operating income under the two alternatives: (a) with the industrial systems line and (b) without the line. Compare the difference between the two alternatives' income numbers to your answer to Requirement 1. 3. What have you learned from the comparison in Requirement 2? Print Done